Published
reports in the Orlando Weekly raise speculation of EM.TV's imminent sale
of the Jim Henson Company to new levels.

According
to the report, one of the stipulations of the Kirch
rescue package, was the "demand that EM.TV immediately divest
itself of all unnecessary assets. Which, apparently, included the Jim
Henson Co."

Many
at EM.TV are more willing to sell Henson since the surprise revelation
that they wouldn't own the full
rights to The Muppet Show and Fraggle Rock until 2050. The board found
out last month, even though the contract was signed in March 2000.

Henson
sources confirmed that there is strong interest from other companies wishing
to acquire the Henson franchise. There is also some appeal for the Henson
family to see the company back in US hands since Germany's EM.TV stock
dropped 95% last November.

To
add fuel to the fire, the Orlando Weekly revealed more details of what
has been speculated since January concerning Disney's interest in the
company. "Though Disney reportedly has offered EM.TV $300 million for
the Muppets, that initial offer (less than half of what EM.TV
paid 12 months ago) was rejected out of hand. Complicating matters
is the fact that one of Mickey's main competitors -- Viacom/Nickelodeon
-- also wants to get their mitts on the Muppets."

Both
companies have different appeal. While Disney does have the theme parks
(specifically Muppet Vision 3-D) and merchandising savy, they've been
known to stifle "creative control" in order to get the finished
product they want. Likewise, the Muppets would also be living in Mickey's
shadow, Disney would only let the Muppets grow so much.

Viacom
is intriguing because they've been looking for "character icons"
to associate with the company and the Muppets would be at the top of their
promotional interests. Viacom would put the Muppets back at the television
forefront. However, it's unknown what kind of vision they have for the
future of the Muppet franchise and they lack the merchandising prowess
of Disney.

Last
month, rumors were circulating about Disney
and Viacom both being strongly interested in
acquiring Henson. HIT was also pursuing Henson,
but that deal seems unlikely now after they bought the rights to Barney
for $275 million on February 9.

Let's
not forget that other suitors are very likely. EM.TV is keeping things
very quiet concerning their plans for Henson, so if a change in ownership
does occur it will happen without much warning.

Up
until this point, EM.TV has just been trying to survive. Now that they
have the financial backing of Kirch, in the coming days and weeks EM.TV
will be making decisions concerning their various properties, like the
Muppets and Formula One. And that's when things will get really interesting
for us.

Fan site Muppet Central created by Phillip Chapman. Updates by Muppet
Central Staff. All Muppets, Bear characters are copyright
of The Muppets Studio. Sesame Street characters are copyright of Sesame
Workshop.
Fraggle Rock, Creature Shop and similar likenesses are copyright
of The Jim Henson Company.
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